Novak instructs Russian oil companies to boost output of winter diesel fuel - govt press service

MOSCOW. Oct 16 (Interfax) - Deputy Prime Minister Alexander Novak has instructed Russian oil companies to ramp up production of winter diesel fuel in order to meet the needs and demand of the domestic market and for northern delivery, the government's press service said following a meeting that Novak chaired on the domestic petroleum product market with oil company management, Energy Ministry representatives, the Federal Anti-monopoly Service (FAS), and the Agriculture Ministry.

Similar actions were previously instructed, an Interfax source familiar with the minutes of the meeting on October 6 reported: "To recommend that vertically integrated oil companies prevent a decline in the volume of sales of diesel fuel at exchange trading, providing for the full replenishment of summer diesel fuel with inter-seasonal and winter diesel fuel; and to ensure an increase in production of winter diesel fuel at oil refineries in order to meet market needs in full."

"A stable situation with prices for petroleum products in the retail segment; a decline in exchange prices and small wholesale prices; as well as the cost of fuel for agricultural producers was noted," according to the report following the meeting on Monday.

Novak has instructed the Agriculture Ministry jointly with regional authorities to continue monitoring the prices of intermediaries during sales of fuel to farmers. The FAS must organize inspections in problematic regions in order to check for price reductions by large oil companies and independent market participants at gasoline stations and in the small wholesale segment, in accordance with price dynamics on the exchange where the fuel is purchased.

Meanwhile, Interfax sources report that the Energy Ministry has requested that companies provide data on the required volumes of diesel fuel exports, as broken down by grade and mode of transportation, in order to estimate the volumes of exports necessary to prevent overstocking at refineries.